Another day another eaves ...

It's been a long time since my last post (six or seven months), work and life got in the way of the important business of making eaves.  I have abit of time though so I'm hoping to get back into my articles looking at gameplay for those just starting out in the cuthroat world of the Empire Avenue Social Media Stock Exchange.

As some of you may remember a long time ago I wrote an article saying that dividend gamers punish high priced stocks .  This has mutated abit in the last seven months ... but how?

First and foremost, my original premise was that the "real" eaves were in low priced stocks.  There were a variety of factors that played into this pre erindale, that no longer hold true ... high priced stocks that produce dividends are now definately worth owning compared to seven months ago.

What hasn't changed however is that low priced stocks are still where the "easy" eaves are at.  And by easy I mean a quick flip for profit.  With the explosion of new IPO's on Empire Avenue what we are seeing now is a frenzy of quick buying (200 shares) for a quick profit.  For those of you new to Empire Avenue (EAV) how this works is simple:

1.  New share comes onto the market priced at 10

2.  At this price ANYONE can afford to buy it even other fairly new players.  

3.  Speculators flood in, both new players as well as old seasoned vets ... who knows if this will be the next (e)PIRILLO ?

4.  This behaviour is magnified by facebook groups and empire avenue communities that make grabbing "hot stock" a priority (hello Team Zen, which incidentally I help admin)

5.  Stock price zooms up in price fueled by speculation ... once the account hooks up a social media (SM) account the price explodes.

6.  Speculators double, triple, quadruple their eaves 

7.  Stock price starts to plateau at which point everyone looks at daily divs -- hold or sell?  It's usually sell.

In my opinion the only shares worth holding onto are those producing a minimum of .50 divs per share or more.  This is dependant of course on share price (the higher the share price the more divs one might expect it to produce.

This leads to interesting strategies.  Currently for myself my strategy is to hold onto a solid core group of strong dividend producing shares (.90 per share minimum).  This gives me a solid base of daily dividend producing stocks that I can count on getting income from on a daily basis.  My wealth right now sits at 3.3 mill with 30k a day in eaves coming in through daily dividends.  Using that daily income I can play the quick flip game buying up hot new IPO's as they come in, sitting on those worth keeping while flipping those that don't produce -- once they plateau of course.  Timing the top of the roller coaster is a tricky affair, and this is where the "Price Alert" feature is your friend.  Use it.  

So in closing:  

a.  As a new player quick flips is going to be the easiest way to raise capital

b.  To get on hot new IPO before it rockets join a stock tip community (for example Team Zen - we created the term "speculator stampede"

c.  Use Price Alerts that go to your email (ideally your cell phone email) so you can sell the instant a "hot" new stock becomes "not"

d.  Take a small portion of your daily dividend income and start investing in high dividend earners.  This means looking at the leader boards under "weekly dividends" option and putting a few eaves into some of the stars of EAV ... (e)Pirello, (e)Clatko, (e)Adriel and so forth.   It doesnt matter how little you can put in ... pick a number and stick with it gradually increasing as your daily income picks up.

There are some players that play the quick flip game exclusively ... personally I recommend a two pronged approach, once that focuses on long term daily dividend growth, while not ignoring the benefits of flipping new IPO's for a profit.  As a new player it will benefit you to start with a strategy of quick flipping almost exclusively (minus the small percentage towards building a stable of div producing stock) until you can build that all crucial stable base of daily dividend producers.

Once the daily dividend income starts rolling at a plus 10k a day range life will become alot easier.  =)